Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Hindrance Company leased equipment for the entire nine-year useful life, agreeing to pay P1,000,000 at the start of the lease term on December 31, 2018 and P1,000,000 annually on each December 31 for the next eight years. The rate implicit in the lease which is known to Hindrance is 10%. Hindrance's incremental borrowing rate is 12%. The PV factors are as follows: PV of an ordinary annuity of 1 at 10% for 9 periods 5.76 PV of an ordinary annuity of 1 at 12% for 9 periods 5.33 PV of an annuity due of 1 at 10% for 9 periods 6.33 PV of an annuity due of 1 at 12% for 9 periods 5.97 PV of 1 at 10% for 9 periods 0.42 PV of 1 at 12% for 9 periods 0.36
Problem 1. What amount shall be included in the current liabilities in relation to the lease on December 31, 2018?
A. 467,000
B. 533,000
C. 1,000,000
D. 4,863,000
Problem 2. What amount shall be reported as lease liability on December 31, 2019?
A. 4,863,00
B. 5,330,000
C. 5,963,000
D. 6,330,000
Problem 3. What is the interest expense for 2020?
A. 486,300
C. 596,300
D. 633,000
Problem 4. What amount shall be included in the non-current liabilities in relation to the lease on December 31, 2020?
A. 3,784,230
B. 4,349,300
C. 5,000,000
D. 6,000,000
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
Accounting problems, Draw a detailed timeline incorporating the dividends, calculate the exact Payback Period b) the discounted Payback Period. the IRR, the NPV, the Profitability Index.
Term Structure of Interest Rates
Write a report on Internal Controls
Prepare the bank reconciliation for company.
Create a cost-benefit analysis to evaluate the project
Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR
Distinguish between liquidity and profitability.
Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.
Simple Interest, Compound interest, discount rate, force of interest, AV, PV
CAPM and Venture Capital
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd